Title 26 — Internal Revenue CodeRelease 119-73

§2054 Losses

Title 26 › Subtitle Subtitle B— Estate and Gift Taxes › Chapter 11— ESTATE TAX › Subchapter A— Estates of Citizens or Residents › Part IV— TAXABLE ESTATE › § 2054

Last updated Apr 6, 2026|Official source

Summary

When figuring the federal estate tax, the estate can deduct losses that happen while it is being settled if they come from fires, storms, shipwrecks, other casualties, or theft. The deduction only covers losses that insurance or some other source does not pay back.

Full Legal Text

Title 26, §2054

Internal Revenue Code — Source: USLM XML via OLRC

For purposes of the tax imposed by section 2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate losses incurred during the settlement of estates arising from fires, storms, shipwrecks, or other casualties, or from theft, when such losses are not compensated for by insurance or otherwise.

Reference

Citations & Metadata

Citation

26 U.S.C. § 2054

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73